Policy and regulation

New York Attorney's Office opposes investment in cryptocurrencies from pension funds

New York Attorney's Office Opposes Pension Fund Investments in Cryptocurrencies

The Attorney General of New York (NYAG) sent a letter to members of the US Congress urging them not to allow changes in legislation and the expansion of the use of digital assets.

In her letter to members of Congress, Letitia James stated that proposes to repeal two laws: the recently proposed Retirement Savings Modernization Act and the Financial Freedom Act. Both projects aim to allow investments in digital assets with funds from individual retirement accounts (IRAs) and savings plans.

The prosecutor, citing that FTX exchange did not use user funds, listed four main reasons why you should exclude digital assets from retirement accounts and savings plans:

  • The importance of protecting pension savings in the long term.

  • The historic debt of Congress to protect the pension funds of American citizens.

  • Widespread, in her opinion, fraud in the crypto industry and the lack of clear regulations.

  • Volatility and uncertainty regarding ownership and valuation of digital assets.

  • On the other hand, the prosecutor explained that there is a difference between digital assets and blockchain technology. James believes that US citizens can buy shares of publicly traded blockchain-based companies with funds from pension funds.

    Recently, US senators asked Fidelity Investments to remove bitcoin from retirement savings due to the high volatility of the asset.

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